Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially but declined year over year. Free cash flow remained negative and worsened compared to both prior periods due to lower operating cash flow despite reduced capital expenditure.
- The cash conversion ratio, as measured by free cash flow margin, turned more negative this quarter. Operating cash flow fell while capital expenditure also decreased, leading to a larger free cash outflow.
- Compared to the prior quarter, revenue improved but operating cash flow weakened significantly, resulting in a deeper negative free cash flow. Versus the same quarter last year, both revenue and operating cash flow were lower, and free cash flow margin worsened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$157.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$152.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$152.6M
Cash generated by operations before capital spending.
CapEx
$305.5M
Capital spending and related asset purchases.
FCF margin
-3.5%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-06-30 | $4.6B | $382.6M | $419.2M | -$36.6M | -0.8% |
| 2024-09-30 | $4.3B | $759.9M | $621.4M | $138.5M | 3.2% |
| 2024-12-31 | $3.9B | $346.9M | $453.2M | -$106.3M | -2.7% |
| 2025-03-31 | $4.4B | $152.6M | $305.5M | -$152.9M | -3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -70.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Decline
Operating cash flow decreased markedly from both the prior quarter and the year-ago period, while revenue increased sequentially.
This decline was the primary contributor to the wider negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The cash conversion ratio, as measured by free cash flow margin, turned more negative this quarter. Operating cash flow fell while capital expenditure also decreased, leading to a larger free cash outflow.
Compared to the prior quarter, revenue improved but operating cash flow weakened significantly, resulting in a deeper negative free cash flow. Versus the same quarter last year, both revenue and operating cash flow were lower, and free cash flow margin worsened.
Monitor the trajectory of operating cash flow given its substantial decline despite stable revenue.